Can You Get Equity Release on a Jointly Owned Property?

How Does Equity Release on Jointly Owned Property Work?
Contributors: Nicola Date, Katherine Read. Edited by Rachel Wait & Reviewed by Francis Hui
Can You Get Equity Release on a Jointly Owned Property? Joint & Co-ownership Explained. Tenants in Common Explained. Discover Everything You Need to Know.

If you want to get equity release on a jointly owned property, it’s possible, but there are a few things you need to be aware of.

If you own your property and meet the other requirements, such as age and owning a suitable ‌property, you may ‌use equity release to get cash from your property.

Most people originally had a combined mortgage to buy the property or own their homes jointly with a spouse or partner.  

This leads them to question if joint equity release is an option.

The quick answer is yes, it is frequently possible to release equity from your home if it is jointly owned. Provided that both owners individually meet the requirements for equity release.

You may ‌take out a combined plan if you are both of the age requirements for equity release, which are usually 55 for a Lifetime Mortgage and 60 for a Home Reversion Plan. 

There are some additional things you need to be aware of.

As experts in our field, we discuss the following in this article:

    Our experts have done a detailed analysis on what equity release on a jointly owned property entails. We’ve consulted multiple experts and analysed regulated plans. 

    Here’s what we found.

    How Does Joint Equity Release Work?

    Similar to how a joint mortgage operates, joint equity release uses the same basic principles as equity release but releases the money in joint names.

    You’ll be able to take out a combined plan if you’re both of the age requirements for Equity Release, which are 55 for a Lifetime Mortgage and 60 for a Home Reversion Plan. 

    Joint equity release works on the same principle as equity release, but ‌the amount released is in joint names, similar to the way a joint mortgage works.

    You can take out a joint equity release if you’re both:

    • Co-owners of the property (or intend to use equity release to repay a mortgage to become the joint owner of a home).
    • Married, in a civil union, or cohabiting.
    • Meet the age eligibility.
    • Living in a property that is eligible for equity release.

    How much you can release will depend on the age of the youngest individual listed on the title deeds because older borrowers can release more equity from their houses.

    This is because under joint equity release, you are not required to pay back the provider’s debt until the second participant in the plan passes away or enters long-term care. 

    This grants you and your partner the right to live in your house for the rest of your lives together, or at the very least, until you can’t do so because of the need for long-term care.

    Can You Get Equity Release With Joint Ownership?

    A lifelong mortgage or home reversion plan can be obtained jointly by 2 senior homeowners who share ownership of a single house. 

    If you jointly co-own a home as joint tenants, you have access to many equity release plans. 

    And the equity release plan may continue to be in effect until the final co-owner passes away or enters long-term care.

    You’ll be able to change the plan after the passing of the first co-owner because you’re both full owners of the property. 

    This includes accessing any unused reserve facility, and the choice to borrow additional funds if necessary.

    The equity release plan will ‌end at the passing of the final joint owner or when the final joint owner enters a long-term care facility permanently. 

    The value of your estate will ‌pay back the lender (usually from the sale proceeds of the property). 

    The last surviving co-owners will determine how to distribute any money that is left.

    Can You Get Equity Release on Your Share of a Co-owned Property?

    It’s not possible for one co-owner to take equity release on their share solely if you jointly own a property. 

    One co-owner would need to be dropped from the title deeds for a sole application.  

    Alternatively, you would need to apply for the equity release in both names.

    Can You Get Equity Release if You Co-own a Property as Tenants-In-Common?

    If you co-own a property as tenants-in-common, you can access equity release.

    Your lender, however, might impose limitations on future changes to the plan, including the ability to borrow more money if an owner passes away.

    You must submit the equity release application in both names when properties are co-owned. 

    Can You Get Equity Release if More Than 2 People Own the Property?

    Only properties with a single or joint owner are eligible for equity release plans. 

    If there are over two co-owners of the property, the additional owners must consent to be removed from the title deeds.

    Can You Get Equity Release if One Joint Owner Is Under 55?

    An equity release plan requires a minimum age of 55 to be eligible. 

    You can only get an equity release plan if you apply for equity release in the name of the homeowner who is over 55 if a jointly owned home is owned by one homeowner over 55 and another under 55. 

    However, it would also be necessary to strike the homeowner under 55 from the title deeds. 

    How Do I Know if I Jointly Own My Property as Joint Tenancy or Tenants-In-Common?

    You’ll need to determine how you co-own your property. There are primarily two ways to co-own property in England and Wales:

    If you both fully own the property, you have a joint tenancy. The remaining co-owner will automatically receive the deceased co owners share of the property if one of you passes away.

    If each co-owner has a specific percentage of the property, you are tenants in common. They might split this 50/50 or even 99/1.

    A co-owners interest in the property passes to their beneficiaries under their will when they pass away.

    You can check the title deed of the property to find out if your property is‌ co-owned as tenants in common or joint tenancy.

    Does Equity Release Have to Be in Joint Names?

    Yes, equity release has to be in joint names when you are co-owners of the property, such as your husband or civil partner. 

    To get equity release, both partners must agree.

    Can We Remove the Younger Unqualifying Homeowner & Then Apply?

    If one homeowner is too young to be eligible for a lifetime mortgage, some advisors could advise that you take them off the title deed if it’s workable.

    But since you must pay back the debt as soon as the elder homeowner passes away or enters care, it can be risky and could eventually leave the younger homeowner homeless. 

    It is best discussed with the aid of legal counsel.

    Can 2 People Have Equity Release if Only One Name Is on the Deeds?

    In order for 2 people to take up an equity release plan in both names, both names need to be on the title deed. 

    If you purchased a property alone but now live with another person, such as a new husband or partner, you will need to add their name to the property deed as an owner to get equity release in both your names. 

    We recommend discussing this with your advisor in advance. They can advise you on doing this as part of the equity release application.

    Common Questions

    Can One Person Take Out an Equity Release Plan on a Jointly Owned Property?

    What Happens to Your Equity Release Plan When One Owner Dies?

    How Do You Get Equity Release if One Owner Has Already Passed Away?

    Can Tenants in Common Do Equity Release?

    In Conclusion

    It is possible to do equity release on jointly owned properties.

    Similar to how a joint mortgage operates, joint equity release uses the same basic principles as equity release but releases the money in joint names.

    Both co-owners must be over the age of 55 years and the property must be eligible for equity release.

    The equity release plan will only end when the last co-owner dies or enters long-term care.

    You can’t get equity release on property owned by more that 2 people. And you can’t get equity release as an individual on your share of a property you co-own.

    There are several additional considerations that need to be addressed. 

    We recommend going through all the scenarios with your equity release lender so you know what getting equity release on a jointly owned property entails.

    Editorial Note: This content has been independently collected by the EveryInvestor team and is offered on a non-advised basis. EveryInvestor may earn a commission on sales made from partner links on this page, but that doesn’t affect our editors’ opinions or evaluations. Learn more about our editorial guidelines.